By Xavier Kong
A DRAFT of the Temporary Relief for Inability to Perform Contractual Obligations due to Coronavirus Disease 2019 (Covid-19) Situation Bill has been made available, following the announcement from Singapore’s Ministry of Law that such a bill would be tabled in Parliament “sometime next week.”
The next sitting of Parliament in Singapore is April 6, with the session due to start at noon. However, when contacted, a representative of the Ministry of Law shared with FocusM that it would “likely be April 7.”
“The bill was put together very quickly, in a matter of days, as we saw the situation deteriorating. Different ministries and agencies came together. It was a whole-of-government effort,” said Singapore’s Minister for Home Affairs and Law K Shanmugam in an official statement from the Ministry of Law.
The draft offered more details regarding the selection of the body of assessors, along with the handling of deposits, and the consequences of contravention of the bill.
Deposits are not allowed to be forfeited upon the receipt of a notification for relief, unless the notification is withdrawn or an assessor has made a determination that the forfeiture is just and reasonable. Deposits that had already been forfeited between Feb 1 and the date of commencement of the bill must, on receipt of a notification for relief, be restored either in full or in part as soon as is practicable, as though no forfeit had occurred.
The punishment for contravening the bill comes up to a fine not exceeding S$1,000.
With regard to the assessors, the ministry will be setting up a registrar of assessors, which will handle the applications submitted and assign the cases. A panel of assessors will be appointed as well. The registrar and assessors will be treated as public servants, and are protected from liability.
The assessor’s duties are also further outlined, where they not only have to determine if a case is valid but also take into account the ability and financial capacity of the party to a particular scheduled contract to perform the obligation, while seeking to find a resolution that is just and equitable.
In seeking that resolution, assessors can require a party to a contract to do anything, or pay any sum of money to discharge any obligation, or require the return of repossessed goods or immovable property.
There will also be no legal representation for parties to a contract when at proceedings before an assessor, with each party bearing their own costs for the proceedings.
In case physical meetings are impracticable or would take too long to set up, alternative arrangements such as video or tele-conferencing can be used, with meetings also able to reduce the quorum to a specified number. Electronic means of voting are also valid, and proxies may also be used, though limited to a specified number as well.
The Temporary Relief Bill offers relief to tenants as well. If owners are refunded or relieved from any liability to pay any property tax, the owner has to pass on the benefit to the tenant, whether it be through a payment of money, or through an off-set or reduction of any fee payable by the tenant to the owner, with no conditions to be attached. Failure to do so would see a fine not exceeding SG$5,000 levied against the owner. – April 3, 2020
